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Now supermarket food prices jump by whopping 7% as UK prices increase faster than the rest of Europe
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09 July 2008
The rise in food prices at the supermarket is accelerating, a study shows. Research found a record annual increase of seven per cent for June.
This is thought to be the highest rate for more than 15 years. It jumped from six per cent in May and 4.7 per cent in April.
The data, published by the British Retail Consortium, appears to support a recent study from the European Commission which found UK food prices are rising more quickly than most of Western Europe.
Families will feel the pinch at the supermarket with food prices rising by seven per cent
Despite this, the consortium says supermarkets are protecting families against the worst effects of commodity price rises.
Food would be even more costly if stores had not carried the burden of many price increases, for example, those on oil and transport. The cost of fresh food is rising particularly fast.
The annual increase was recorded at 8.4 per cent – up from 6.4 per cent in May.
Beef, pork, veal, chicken, dairy products, oils, margarine and cooking fats all saw large increases, it said.
The Daily Mail Cost of Living Index has found annual price increases of 19.8 per cent on a basket of essentials, from bread and milk to chicken and eggs.
According to the consortium, price inflation across all shops is rising at 2.5 per cent a year.
This including fashion and electrical stores, where prices are falling.
BRC director-general Stephen Robertson said: 'Although their own costs are going up, food retailers are running high-profile price cuts and promotions.
'They are keeping prices to customers down by cutting costs and increasing sales.'
A study this week showed that the major stores claimed a £200million windfall between 2005 and 2007 by increasing prices more than producers did.
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